If you’re spending more time performing collections tasks than running your business, then it’s probably time to consider alternatives. One such alternative is factoring. It’s a business financing tool which helps accelerate cash flow while also alleviating administrative costs and other issues associated with collection activities. Here’s how it works: a factoring company buys your invoices (accounts receivables) for a lump sum, and at a discounted rate. You then have immediate cash, and the factoring company now takes on the task of collecting from the clients who owed you on your invoices.
There are several benefits to factoring your invoices:
1. Factoring is the fastest and easiest process when compared to other forms of obtaining capital. You normally receive the factor within twenty-four hours, depending on the approval (which is based on the financial strength of your customers and not your personal and/or business credit rating).
2. Factoring is not a loan, but is a debt-free process that enables you to add capital to your business quickly.
3. Factoring reduces the stress that comes from having insufficient cash to run or grow your business.
4. Factoring enables you to concentrate on operating your business (which includes paying your own bills) instead of collecting money from customers.
The Jayaram Law Group routinely and successfully assists its clients in their business-to-business (b2b) collection needs. We take pride in obtaining payment on accounts receivables without fracturing critical business relationships or engaging in time-consuming and costly litigation efforts.
If you need business debt collection services conducted in a professional manner, contact our B2B (business-to-business) debt collection law firm by calling 312.454.2859 or visiting www.jayaramlaw.com.